General Mills to shut three Missouri Plants in cost-cutting drive

USA – General Mills will close three manufacturing plants in Missouri over the next three years as part of a sweeping cost-cutting and productivity initiative aimed at reshaping the company’s global supply chain.

The Minnesota-based food giant announced in a stock-exchange filing on September 25 that it will shutter a pizza crust facility in St. Charles by the end of June 2026 and two pet food plants in Joplin a month later. 

The closures come under the company’s bid to “increase the competitiveness of our supply chain,” a spokesperson said.

The St. Charles plant was acquired in 2022 through General Mills’ purchase of Wisconsin-based TNT Crust, while the Joplin pet food sites became part of the group in 2024 through its US$1.45 billion acquisition of Whitebridge Pet Brands’ North American business.

“Production at these locations will transition to other facilities,” General Mills spokesperson Mollie Wulff said in a statement. 

The company added that employees at the Joplin sites will have opportunities at other General Mills pet food plants, while it will work with St. Charles workers to explore positions within the business.

However, the company has declined to say how many jobs will be lost, and no Worker Adjustment and Retraining Notification (WARN) Act notice had been filed with the Missouri Department of Higher Education and Workforce Development as of October 1.

Cost savings and restructuring charges

General Mills expects to record about US$82 million in restructuring charges from the closures and the consolidation of other unnamed facilities. 

In May, the company approved a multi-year “global transformation initiative” designed to streamline operations and boost efficiency, estimating US$70 million in severance-related expenses.

“While this news represents hard choices, they are necessary to fund product innovation, create compelling consumer value, and position General Mills for long-term success,” the company said in a statement to the Minnesota Star Tribune.

The move follows a difficult year for General Mills. For the full fiscal year ending May 25, the company reported a 2% drop in net sales to US$19.5 billion, with organic sales also down 2%. 

In the first quarter of its current financial year, sales fell more steeply: reported revenues dropped 7% to US$4.5 billion, while organic revenues slipped 3%.

A long-term bet on growth

General Mills, the maker of Cheerios, Yoplait, and Blue Buffalo, said it plans to reinvest some of the cost savings to stimulate sales volumes. 

“So far, so good. We strengthened our pound share in eight of our top ten categories and now we’re holding pound share in pet,” chairman and CEO Jeff Harmening said when discussing first-quarter results.

The closures in Missouri are part of a broader industry trend, with major food companies under pressure to manage inflation, shifting consumer demand, and global supply chain constraints. 

For General Mills, the restructuring marks another step in its multi-year plan to modernise its operations and refocus resources on growth areas.

Sign up HERE to receive our email newsletters with the latest news updates and insights from Africa and the World, and follow us on our WhatsApp channel for updates.